According to the Profit First method, separating your income and expenses into separate accounts can help you better manage your cash flow and ensure the financial stability and growth of your business.

When you separate your income and expenses into different accounts, you can clearly see the flow of money in and out of your business. This can help you identify areas where you may be overspending or underspending, and take steps to address any imbalances. Additionally, by allocating a percentage of your income to different accounts, such as profit, taxes, and reserves, you can ensure that you are consistently setting aside funds for important business expenses, even if your income varies from month to month.

Having a separate income account will give you better visibility on how much money is coming in and the ability to budget and forecast your expenses, this will help you plan for and manage the ebbs and flows in cash flow. This way, you'll be able to make informed decisions about how to allocate your resources and ensure that your business is consistently generating profit.

Keep in mind that separating your accounts will allow you also to use different strategies for each of them, for example, you can use a higher yield account for your reserves, or a lower-fee account for your operating account. This way you can optimize your income and expenses according to your business needs.